Baar-Zug, Switzerland, 17 September 2015
Partners Group, the global private markets investment manager, has agreed to acquire a 32-hectare industrial site in Yennora, in the west of Sydney, on behalf of its clients. Partners Group bought the site from its former owner, the global aluminum producer Alcoa, with the intention of developing it for a return to active industrial use. For this initiative, Partners Group has partnered with Logos Property Group.
The Yennora site, which is 24 kilometers from Sydney's central business district, is ideally located for industrial use given its proximity to a major intermodal container terminal and a residential train station. The site offers multiple value creation opportunities and Partners Group plans to revitalize it and bring it back to full occupancy by leasing or selling off the existing buildings, developing new industrial buildings and sub-dividing the remaining property into smaller lots ranging from 2'000-6'000 square meters. These lots will be sold in stages to owner-occupiers looking for sites for 'build-to-suit' industrial properties. In addition, Partners Group will also explore alternative uses for the site, including the possibility of a residential rezoning subject to planning approval.
Bastian Wolff, Managing Director and Head Private Real Estate Asia, Partners Group, states: "There is growing demand for well-located industrial property in the west of Sydney and this site in Yennora is perfectly positioned to cater to that. Our repositioning strategy will help to regenerate the area by preparing the former Alcoa property for use by the next generation of industrial occupiers."
Claude Angéloz, Partner and global Co-Head Private Real Estate, Partners Group, adds: "We like the fundamentals of the Australian market, which we believe offers select compelling opportunities for investors like us who are looking outside of the crowded core space. We only invest when we see a clear opportunity to create value for our clients through an active owner-oriented management strategy and the Yennora property offers us this with its 'buy, fix, and sell' value proposition."